In a bourse filing in April, the Supermarket Operator, Sheng Siong, announced that it aims to open three to five stores annually in the next three to five years, expanding its current 65 outlets throughout Singapore. This comes after it was able to secure leases for 3 new stores in 2021, which were responsible for boosting the company’s revenue in the second half of 2021 by 6.4 percent to almost USD 500 million. In particular, it aims to continue looking out for retail spaces in new and existing public housing estates, especially in areas where it does not have a presence.
Additionally, it also aims to continue expanding its presence in Kunming, China, where it currently has 4 stores, all of which were largely unaffected despite the Coivd-19 lockdown in Shanghai, as well as its e-commerce delivery service in Singapore, which saw an increase in demand during the pandemic. However, with the subsiding of the domestic Covid-19 situation, together with the further easing of restrictions, Sheng Siong expects the elevated demand to taper down as consumers increase their spending on other social activities or international travel. Additionally, the supermarket operator noted that there were still various risks present, such as the risks of supply chain disruptions from the Covid-19 pandemic, climate, and geopolitical events, all of which could result in higher input costs.
(Source: Straits Times)